The FCA, which surveyed 1,000 drivers, said many ghost brokers pose as legitimate insurance sellers but offer cheap rates.
The policies are often completely bogus, are invalid because they falsify information to bring the price down, or are cancelled soon after purchase.
Graeme Reynolds, director of insurance at the FCA, said that “tight budgets make cheap offers tempting – and scammers take advantage of that”.
“Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy.
“Driving uninsured could cost you far more than any premium.”
The FCA is working with social media influencers to warn young drivers about the growing threat of ghost broking.
